(GuruFocus, December 1, 2009) When you look at the portfolio of the Investment Gurus that GuruFocus tracks, keep in mind a good portion of their investment activities are not recorded and reported on our website. Such activities include short position, debt positions, foreign stocks and currency contracts, many other kind of derivatives, to name just a few.
Richard Perry is one of the Gurus we do not really have a good handle on. There are reports stating that he manages somewhere around $14 billion, yet GuruFocus only have visibility on $1.15 distributed on 49 stocks.
Forbes had a good article profiling him:
Oh… well, for most of us, first of all, we do not have access to buy a big chunk of some distressed company; if we do, we may be too scared to buy into any of the deals. Same thing applies to the CDS deals that John Paulson and Prem Watsa had – they could have it, we couldn’t; and it happens to Buffett’s Goldman Sachs and GE deals.
That leaves common stock, we can buy those – It makes me wonder if the word “common” has any other intentional meaning here.
Back to Richard Perry, since he founded his hedge fund in 1988, he never lost money until 2008. On
These are the top holdings of Richard Perry as of September 30, 2009:
No. 1: Humana Inc. (HUM), Weightings: 8.59% - 2,650,000 Shares
Humana, Inc. is a health services company that facilitates the delivery of health care services through networks of providers to its medical members. Humana Inc. has a market cap of $7.04 billion; its shares were traded at around $41.51 with a P/E ratio of 7.2 and P/S ratio of 0.2. Humana Inc. had an annual average earning growth of 18.7% over the past 10 years. GuruFocus rated Humana Inc. the business predictability rank of 3-star.
No. 2: Palm Inc. (PALM, Financial), Weightings: 7.89% - 5,200,000 Shares
Palm, Inc's products include smartphones, under the Treo brand; mobile managers, under the LifeDrive brand; handheld computers, under the Tungsten and Zire brands; as well as software and accessories. Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores. Palm Inc. has a market cap of $1.77 billion; its shares were traded at around $10.91 with and P/S ratio of 2.4.
No. 3: Universal American Financial Corp. (UAM, Financial), Weightings: 5.58% - 6,811,233 Shares
Universal American Corp. offers a range of health insurance and managed care products and services. Formerly known as Universal American Financial Corp., the company is headquartered in Rye Brook, New York. Universal American Financial Corp. has a market cap of $799.3 million; its shares were traded at around $10.36 with a P/E ratio of 6 and P/S ratio of 0.2.
No. 4: Abercrombie & Fitch Co. (ANF, Financial), Weightings: 5.43% - 1,900,000 Shares
Abercrombie & Fitch Co. is principally engaged in the purchase, distribution and sale of men's, women's and kids' casual apparel. Abercrombie & Fitch Co. has a market cap of $3.51 billion; its shares were traded at around $39.93 with a P/E ratio of 41.2 and P/S ratio of 1. The dividend yield of Abercrombie & Fitch Co. stocks is 1.8%. Abercrombie & Fitch Co. had an annual average earning growth of 21.8% over the past 10 years. GuruFocus rated Abercrombie & Fitch Co. the business predictability rank of 5-star.
No. 5: VeriSign Inc. (VRSN, Financial), Weightings: 5.15% - 2,500,000 Shares
VeriSign is one of the leading providers of trusted infrastructure services to website owners, enterprises, electronic commerce service providers and individuals. Verisign Inc. has a market cap of $4.33 billion; its shares were traded at around $22.44 with a P/E ratio of 21 and P/S ratio of 4.5. Verisign Inc. had an annual average earning growth of 2% over the past 5 years.
No. 6: The Hershey Company (HSY, Financial), Weightings: 5.07% - 1,500,000 Shares
The Hershey Company is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products. The Hershey Company has a market cap of $8.03 billion; its shares were traded at around $35.37 with a P/E ratio of 16.6 and P/S ratio of 1.6. The dividend yield of The Hershey Company stocks is 3.4%. The Hershey Company had an annual average earning growth of 7.2% over the past 10 years.
Conclusion
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Richard Perry is one of the Gurus we do not really have a good handle on. There are reports stating that he manages somewhere around $14 billion, yet GuruFocus only have visibility on $1.15 distributed on 49 stocks.
Forbes had a good article profiling him:
If you've never heard of Perry, that's no accident. He's deeply secretive. At 53 he is one of the most successful investors of our time, but until now he has never been profiled in a major magazine. Yet Perry's consistently superb performance puts him in the league of well-known hedge gods like Paul Tudor Jones and Stanley Druckenmiller. In the 20 years since he started Perry Capital, fresh out of Goldman Sachs, his flagship fund - now with $14 billion in assets - has never had a down year. He's been up an average over that time of 15.4% annually after fees.The article also reviewed Perry’s investment style:
Perry represents a new breed of hedge fund manager. He fires on lots of investment cylinders, creating multiple revenue streams and reducing risk. He thrives in private equity and real estate investing. He uses his strong cash position (he averages only 1.15x leverage) to lend money at eye-popping rates to cash-strapped investors, now that banks won't. In other words, he has built a megafund along the lines of Kenneth C. Griffin's Citadel, which manages $16 billion, and Och-Ziff Capital Management, which has $33 billion under management. These funds are attracting the big inflows from pension funds, endowments, and charities.Yesterday, there was a story in NY Times concerning Investment Guru Richard Perry:
Dubai’s debt crisis could end up being good news for the hedge fund manager Richard Perry and the supermarket mogul Ronald Burkle, two United States investors in the Dubai-owned Barneys New York, The New York Post reported.
This year, Perry Capital, run by Mr. Perry, reportedly became Barneys New York’s largest debtholder, while Mr. Burkle and his investment arm,Yucaipa, were said to haverecently purchased a large amount of the debt owed by luxury retailer.
And with the emirate’s sovereign wealth fund that owns Barneys now struggling to meet debt payments, the two investors may soon control the department store.
“Either way, it is all going to happen earliest in December, latest in February,” one source close to the situation told The Post.
Oh… well, for most of us, first of all, we do not have access to buy a big chunk of some distressed company; if we do, we may be too scared to buy into any of the deals. Same thing applies to the CDS deals that John Paulson and Prem Watsa had – they could have it, we couldn’t; and it happens to Buffett’s Goldman Sachs and GE deals.
That leaves common stock, we can buy those – It makes me wonder if the word “common” has any other intentional meaning here.
Back to Richard Perry, since he founded his hedge fund in 1988, he never lost money until 2008. On
These are the top holdings of Richard Perry as of September 30, 2009:
No. 1: Humana Inc. (HUM), Weightings: 8.59% - 2,650,000 Shares
Humana, Inc. is a health services company that facilitates the delivery of health care services through networks of providers to its medical members. Humana Inc. has a market cap of $7.04 billion; its shares were traded at around $41.51 with a P/E ratio of 7.2 and P/S ratio of 0.2. Humana Inc. had an annual average earning growth of 18.7% over the past 10 years. GuruFocus rated Humana Inc. the business predictability rank of 3-star.
No. 2: Palm Inc. (PALM, Financial), Weightings: 7.89% - 5,200,000 Shares
Palm, Inc's products include smartphones, under the Treo brand; mobile managers, under the LifeDrive brand; handheld computers, under the Tungsten and Zire brands; as well as software and accessories. Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores. Palm Inc. has a market cap of $1.77 billion; its shares were traded at around $10.91 with and P/S ratio of 2.4.
No. 3: Universal American Financial Corp. (UAM, Financial), Weightings: 5.58% - 6,811,233 Shares
Universal American Corp. offers a range of health insurance and managed care products and services. Formerly known as Universal American Financial Corp., the company is headquartered in Rye Brook, New York. Universal American Financial Corp. has a market cap of $799.3 million; its shares were traded at around $10.36 with a P/E ratio of 6 and P/S ratio of 0.2.
No. 4: Abercrombie & Fitch Co. (ANF, Financial), Weightings: 5.43% - 1,900,000 Shares
Abercrombie & Fitch Co. is principally engaged in the purchase, distribution and sale of men's, women's and kids' casual apparel. Abercrombie & Fitch Co. has a market cap of $3.51 billion; its shares were traded at around $39.93 with a P/E ratio of 41.2 and P/S ratio of 1. The dividend yield of Abercrombie & Fitch Co. stocks is 1.8%. Abercrombie & Fitch Co. had an annual average earning growth of 21.8% over the past 10 years. GuruFocus rated Abercrombie & Fitch Co. the business predictability rank of 5-star.
No. 5: VeriSign Inc. (VRSN, Financial), Weightings: 5.15% - 2,500,000 Shares
VeriSign is one of the leading providers of trusted infrastructure services to website owners, enterprises, electronic commerce service providers and individuals. Verisign Inc. has a market cap of $4.33 billion; its shares were traded at around $22.44 with a P/E ratio of 21 and P/S ratio of 4.5. Verisign Inc. had an annual average earning growth of 2% over the past 5 years.
No. 6: The Hershey Company (HSY, Financial), Weightings: 5.07% - 1,500,000 Shares
The Hershey Company is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products. The Hershey Company has a market cap of $8.03 billion; its shares were traded at around $35.37 with a P/E ratio of 16.6 and P/S ratio of 1.6. The dividend yield of The Hershey Company stocks is 3.4%. The Hershey Company had an annual average earning growth of 7.2% over the past 10 years.
Conclusion
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